Technical Analysis: Gold eases ahead of key resistances as previous risk-on struggles

Technical Analysis: Gold eases ahead of key resistances as previous risk-on struggles

With the fresh doubts over US President Donald Trump's health, despite his leave form the hospital, Gold prices lose the previous day's upside momentum. However, the precious metal keeps trading beyond the $1,900 round-figures while also following a one-week-old ascending trend channel formation. With this, the bulls may eye $1,920 as an immediate upside barrier ahead of the 200-bar SMA surrounding $1,927 and a falling trend line from August 18, at $1,933/34. However, the bullion's run-up beyond $1,934 will give it a free hand to attack the mid-September high near $1,973.

During the quote's downside, the $1,900 and support line of the aforementioned rising channel, at $1,888, becomes the key. If at all the gold prices drop below $1,888, September 24 peak close to $1,877 and last month's low around $1,847/48 could lure the bears. It should be noted that the metal sellers have repeatedly failed to break the 100-day SMA level near $1,857, which in turn makes it additional support to watch.

Trade Forex with MTrading

Join us on FB and Twitter to stay updated on the latest market events.